I am writing this in hopes that it will help the trading community on Profit.ly to avoid some costly mistakes, overtrading being one of them. Reviewing your previous trade stats is critical to success. There is a power in posting your trades- the good, bad, and the ugly. This week I had a revelation in my trading system.  I realized that overtrading is hurting my progress.

In efforts to become better at this trading thing I've come up with a few good steps that have helped me however I am still perfecting my system and it is in no way complete. Overtrading is the most recent hurdle that I have to overcome:

My Steps to successful trading (work in progress)

1. Understand what your personality style is and trade according to your personality.

2. Develop a system and stick to it. Do not deviate. Discipline, discipline, discipline.

3. Money management. Do not risk an amount that you are not willing to lose. Never enter an order without a stop loss set and profit targets. 

4. Do not overtrade. Many times we trade just to be in the action. Sometimes the best trade you make is the one that you don't make. Be patient and wait for the trades to setup. Sometimes less is more. 

 

As i look over my trading statistics, overtrading has been one of the most destructive habits that I have developed that I have to fix. I suggest that as you look over your trades beware of overtrading, adjust, and watch your profits skyrocket. 

 

For more trading ideas come follow me on twitter @cewallstreet